Russel Metals (RUS) AI Stock Analysis

• Market Cap: $2.49B
• Dividend Yield: 5.34%
• Average Volume (3M): 148.45K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.99
• Revenue Growth: -0.13%
• EPS Growth: -33.06%
• Country: CA
• Employees: 3,970
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Distribution
• EPS (TTM): 0.75
• Shares Outstanding: 56,272,755
• 10 Day Avg. Volume: 130,323
• 30 Day Avg. Volume: 148,447
• PEG Ratio: -0.34
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.27
• Price Target Upside: 15.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: C$48.00 ▲(8.57%Upside)

Russel Metals' strong balance sheet and robust cash flow underpin its financial stability, despite challenges in revenue and profitability. Technical analysis shows positive momentum, supported by recent corporate actions that enhance financial flexibility and shareholder confidence. Valuation metrics are favorable for income-focused investors, contributing to a solid overall score.

Positive Factors

Financial Capacity

RUS has significant financial capacity to pursue opportunities across its capital allocation priorities.

Operational Performance

RUS is executing well and continues to demonstrate its ability to capitalize on opportunities as they arise.

Negative Factors

Earnings Estimate

Revised assumptions for the Service Center division, including marking-to-market steel prices and reduced gross margins, have led to a lowered 2025 EPS estimate.

Steel Pricing

Steel prices have been flat-to-down, leading to moderated assumptions for steel pricing in RUS' Service Centers and Steel Distributors segments.

Russel Metals Business Overview & Revenue Model

Company Description

Russel Metals Inc. operates as a metal distribution company in North America. The company operates through three segments: Metals Service Centers, Energy Products, and Steel Distributors. The Metal Service Centers segment sells plates, flat rolled carbon, stainless steel, aluminum, and other non-ferrous specialty metal products, as well as general line steel products, such as plates, structural shapes, bars, sheets, pipes, tubing, and hollow structural steel tubing. It also offers services, including fiber tube and flat laser processing; multi-dimensional press braking and rolling; shearing, slitting, and cutting to length; laser, oxy-fuel, and plasma cutting; stretcher and traditional leveling; beam drilling, notching, coping, and tee-splitting; saw cutting; edge trimming; and cambering. This segment serves customers in industries, such as machinery and equipment manufacturing, construction, ship building, and natural resources. The Energy Products segment distributes flanges, valves, fittings, and tubular goods primarily to energy industry. The Steel Distributors segment operates as a steel distributor for steel service centers and large equipment manufactures. Russel Metals Inc. was incorporated in 1929 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Russel Metals generates revenue primarily through the sale and distribution of metal products. The metals service centers segment processes and distributes metal products, serving as a critical link between metal producers and end users. The energy products segment focuses on the distribution of products used in the oil and gas industry, such as oil country tubular goods, line pipe, and fittings. The steel distributors segment buys steel in bulk from producers and sells it to customers, benefiting from economies of scale. Significant revenue drivers include the demand for metal products in construction and industrial sectors, fluctuations in metal prices, and the company's ability to efficiently manage inventory and logistics. Strategic partnerships with metal producers and a strong distribution network also play a crucial role in the company's earnings.

Russel Metals Financial Statement Overview

Summary

Russel Metals demonstrates financial stability with a strong balance sheet and robust cash flow despite challenges in revenue and profitability. The balance sheet is particularly strong with a high equity ratio and improved debt-to-equity ratio, although income statement metrics indicate declining revenue and profitability.

Income Statement

Russel Metals experienced fluctuating revenues over the past years, with a notable decline in 2024. The gross profit margin in 2024 was 20.88%, a decrease from previous years, reflecting reduced operational efficiency. The absence of EBIT in 2024 indicates challenges in maintaining profitability. The EBITDA margin for 2024 was 7.39%, showing some resilience despite revenue decline, but significantly lower than previous years' margins.

Balance Sheet

Russel Metals maintains a strong equity position, with an equity ratio of 70.66% in 2024, indicating a stable financial structure. The debt-to-equity ratio improved to 0.12 in 2024, reflecting lower financial leverage. Return on equity (ROE) for 2024 was 9.71%, a decrease from previous years, suggesting reduced profitability for shareholders.

Cash Flow

Cash flow from operations was strong at $343.9 million in 2024, though down from 2023. Free cash flow was $253.7 million in 2024, indicating solid cash management. The free cash flow to net income ratio was 1.58, showing that the company generates significant cash beyond net income, albeit decreased compared to previous years.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.26B	4.51B	5.07B	4.21B	2.69B
Gross Profit	889.90M	956.50M	1.13B	1.21B	518.70M
EBITDA	315.50M	428.20M	580.40M	657.90M	125.20M
Net Income	161.00M	266.70M	371.90M	432.20M	24.50M
Balance Sheet
Total Assets	2.35B	2.57B	2.51B	2.31B	1.60B
Cash, Cash Equivalents and Short-Term Investments	45.60M	629.20M	363.00M	133.10M	26.30M
Total Debt	196.80M	422.50M	422.90M	404.30M	399.40M
Total Liabilities	688.30M	930.20M	947.60M	1.07B	731.60M
Stockholders Equity	1.66B	1.64B	1.56B	1.25B	864.70M
Cash Flow
Free Cash Flow	253.70M	389.00M	318.40M	275.70M	346.10M
Operating Cash Flow	343.90M	461.70M	359.90M	304.50M	371.00M
Investing Cash Flow	-417.70M	-5.30M	-6.50M	-107.20M	-27.30M
Financing Cash Flow	-537.90M	-184.90M	-139.10M	-93.50M	-327.10M

Russel Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RUS, the sentiment is Positive. The current price of 44.21 is above the 20-day moving average (MA) of 42.93, above the 50-day MA of 41.54, and above the 200-day MA of 40.58, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 66.67 is Neutral, neither overbought nor oversold. The STOCH value of 96.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RUS.

Russel Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTT	79 Outperform	C$7.79B	16.35	18.79%	2.08%	6.61%	1.87%
MTL	78 Outperform	C$1.26B	11.76	10.81%	5.84%	3.28%	-14.21%
RUS	76 Outperform	$2.49B	16.67	9.30%	5.34%	-0.13%	-33.06%
TIH	76 Outperform	C$10.10B	20.49	17.36%	1.67%	10.93%	-3.34%
WJX	73 Outperform	C$502.18M	12.25	8.09%	6.03%	-2.65%	-47.65%
Sector *	71 Outperform	¥254.81B	12.92	8.49%	3.09%	6.34%	12.88%
ARE	55 Neutral	C$1.29B	―	-9.26%	3.70%	1.70%	-154.73%

Russel Metals Corporate Events

Russel Metals Announces 2025 Shareholder Meeting Results

Russel Metals Inc. announced the results of its 2025 annual meeting of shareholders, where 60.91% of common shares were represented. All nominee directors were elected with strong support, and the advisory ‘say on pay’ resolution was approved by 79.38% of votes. KPMG LLP was appointed as the company’s auditors. This outcome reflects shareholder confidence in the company’s leadership and strategic direction.

Russel Metals Reports Strong Q1 2025 Results and Strategic Expansion

Russel Metals Inc. reported strong financial results for the first quarter of 2025, with revenues reaching $1.2 billion and EBITDA at $86 million, driven by record quarterly shipments and favorable market conditions. The company achieved significant milestones, including a 2.4% increase in quarterly dividends, a $300 million issuance of senior unsecured notes, and a strategic expansion of its U.S. platform, enhancing its capital structure and market positioning.

Russel Metals Enhances Financial Flexibility with Credit Facility Amendments

Russel Metals Inc. has extended its $450 million credit facilities to April 2029, removing the springing lien provision and maintaining unsecured facilities with investment-grade covenants. The company also canceled a $150 million sidecar facility following a $300 million debt issuance, enhancing liquidity and financial flexibility to support strategic initiatives.